No clue on K23bn query

State Residences officials have told the Public Accounts Committee (PAC) of Parliament that they cannot explain audit queries worth about K23.8 billion covering financial years 2015/16 to 2019/20 due to poor handovers.

The revelations came to light on Saturday at Sunbird Livingstonia Beach in Salima where PAC queried current State Residences controlling officers on the matter following an audit report for the year ending June 2021 compiled by the National Audit Office (NAO).

A memo from Acting Auditor General Thomas Makiwa to PAC dated June 20 on queries raised with State Residences indicates that the current occupants have no answers to the queries.

It reads: “A response in respect of unliquidated contingency funds was submitted to my office by the controlling officer for my review. In the response, management explained that when government changed in 2020, there were no proper handovers between the old and the new office bearers.

“Consequently, the current management was not able to trace and furnish the liquidation documents for payments amounting to K5 236 639 307.93 as queried.”

Payment vouchers without adequate supporting documents also amounted to K4 839 328 187.38.

The report added: “A response in respect of payment vouchers not presented for audit was submitted to my office by the controlling officer for review. Management explained that when government changed in 2020, there were no proper handovers between the old and the new office bearers.

“Consequently, the current management was not able to trace and furnish for my review payment vouchers totalling K13 496 362 089.03.”

In this case, Makiwa said it was difficult for him to ascertain the accountability of the payments in question, urging PAC to determine the way forward.

But on a positive note, he noted that the current controlling officers at State House are able to prepare financial statements, which was not the case previously.

Former president Peter Mutharika and Democratic Progressive Party (DPP) were in charge during the time.

In a brief response yesterday, PAC chairperson Mark Botomani confirmed the meeting took place, but said his committee agreed not to comment on the actual issues discussed.

Presidential press secretary Anthony Kasunda said President Lazarus Chakwera has opened up State Residences to public accountability by, among others, allowing its accounts to be audited and even appear before PAC.

“This is a clear testament of the President’s policy of running an accountable and transparent government. Malawians should be assured that this trend will continue,” he said.

In an interview yesterday, economist Frederick Changaya said the problem was cross-cutting, but also hinted at the challenge of taking too long before audits are done which is against the Public Finance Management Act (PFMA 2022).

He said: “The PFMA is clear that controlling officers are taken to task more seriously because in this case it seems some people don’t care.

“You were in the office, we call you back and account for what is being queried and if you can’t, the law must take its course. I find it wrong to ask a controlling officer of this government for something that was done by people in the previous regime.”

Changaya also emphasised the need for controlling officers to stick to annual audits.

In his reaction, Human Rights Defenders Coalition chairperson Gift Trapence said State House should be the first institution to demonstrate accountability, demanding that those responsible for the mess should be taken to task.

On his part, Catholic Commission for Justice and Peace national coordinator Boniface Chibwana stressed the need for proper handovers.

“Recommendations from the audit office have to be followed religiously, but normally they don’t. Even accountability institutions like Parliament do not help to enforce what audits recommend,” he said.

Chibwana also noted that State Residences is always given huge sums in the budget, hence the need to properly follow that money.

The PFMA mentions controlling officers as people who need to be taken to account and these are heads of ministries, departments and agencies such as principal secretaries and district commissioners who head local councils.